caa a22 4500 467929963 CHVBK 20180406152940.0 cr unu---uuuuu 170328e20060201xx s 000 0 eng 10.1007/s11151-006-0008-6 doi (NATIONALLICENCE)springer-10.1007/s11151-006-0008-6 Caprice Stéphane University of Toulouse (INRA), Bât.F, 21 Allée de Brienne, F-31000, Toulouse, France aut Multilateral Vertical Contracting with an Alternative Supply: The Welfare Effects of a Ban on Price Discrimination [Elektronische Daten] [Stéphane Caprice] Rey and Tirole [Handbook of Industrial Organization. Amsterdam: Elsevier (2005)] considered a model in which a monopolist sells to downstream firms using nonlinear contracts. They showed that banning price discrimination fully restores the supplier's ability to leverage its monopoly power by enabling it to commit not to offer side discounts. I show that the situation changes when the supplier competes against a fringe of less efficient rivals rather than being a monopolist. Then banning price discrimination may cause per-unit prices to fall and welfare to increase. The dominant supplier can take advantage of a strategic bargaining effect: reducing the per-unit price makes the outside option of buying from the fringe less profitable, allowing the dominant supplier to extract more bargaining surplus through the fixed fee. Springer, 2006 bargaining effect nationallicence bilateral oligopoly nationallicence price discrimination nationallicence vertical contracting nationallicence Review of Industrial Organization Kluwer Academic Publishers 28/1(2006-02-01), 63-80 0889-938X 28:1<63 2006 28 11151 https://doi.org/10.1007/s11151-006-0008-6 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s11151-006-0008-6 text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Caprice Stéphane University of Toulouse (INRA), Bât.F, 21 Allée de Brienne, F-31000, Toulouse, France aut NATIONALLICENCE 773 0- Review of Industrial Organization Kluwer Academic Publishers 28/1(2006-02-01), 63-80 0889-938X 28:1<63 2006 28 11151 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer